---
title: "SSAs and Financials: Weekly Market Update"
url: https://www.helaba.com/en/ssas-and-financials-weekly-market-update-8
type: dd_research
language: en
updated: 2026-09-28
keywords: Renten, Weekly Market Update_englisch
---

# SSAs and Financials: Weekly Market Update

Focus on: SSAs & Financials 2 May 2024 © Helaba | Research & Advisory | 2 May 2024 1 of 7 Research & Advisory Weekly Market Update Primary market environment: The Federal Reserve left its key interest rates unchanged and the pace of asset reduction will slow from June. It was also stressed that future decisions would be data dependent and there was no clear indication of a rate cut in June. Primary market activity should gradually pick up as the end of the blackout period approaches. Last week our heat map showed a significant easing. This seems to be over, at least in the short term, and risks are weighted slightly higher. Primary market barometer This week saw two transactions in the SSA segment for a total of EUR 5.25bn. We expect issuance activity to pick up in the near term as soon as the dampening effect of the 1 May holiday and the general blackout of the primary market disappears. A week without a primary transaction is a rarity. However, this is likely to change quickly with the end of the re- porting season. The primary market remains fundamentally receptive, as evidenced by the success of recent is- sues. Primary market activity in the senior unsecured segment continued to be affected by the ongoing reporting season. Nevertheless, three very suc- cessful transactions were completed this week. This again underlines the overall positive sentiment. Covered Bonds Senior Unsecured SSAs Risk trend indicator (heat map): Risk aversion on the rise again Relative\* ASW spread change \* ASW levels standardized and 2T-smoothed Sources: LSEG, Helaba Research & Advisory IBOXX EURO 1 day 1 week 4 week 13 weeks 52 weeks 104 weeks Germany 0,03 0,22 0,05 0,73 2,68 3,93 European Union 0,03 0,01 -0,27 -0,12 0,75 2,85 Germany Covered -0,01 0,01 -0,13 -0,03 2,04 2,83 EU Covered -0,02 -0,02 -0,24 -0,42 1,13 2,74 Banks senior preferred 0,00 0,02 -0,14 -0,63 -0,53 0,49 Banks senior bail-in (SNP) -0,01 0,01 -0,08 -0,64 -0,97 -0,19 Banks subordinated -0,01 0,06 -0,11 -0,62 -1,43 -0,49 Supranational 0,02 0,02 -0,19 -0,01 0,94 2,90 Agencies -0,03 -0,04 -0,39 0,06 1,94 3,70 Sub-Sovereigns Germany -0,01 0,02 -0,03 0,10 0,78 1,24 Sub-Sovereigns -0,01 0,02 -0,21 0,02 0,96 2,23 strong middle weak unchanged weak middle strong spread widening\* spread tightening\* Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 2 May 2024 2 of 7 SSAs This week we only saw the first primary market transactions in this segment on Tuesday. However, these were characterised by very strong order books. With demand totalling more than EUR 24bn, KfW had no difficulty in successfully placing a EUR 4bn Green Bond with a maturity of 8 years. With this issue, KfW has now raised EUR 50 billion on the capital market out of a target of EUR 90 to 95 billion for the year as a whole. Green bonds account for EUR 7 billion of the EUR 10-13 billion target. In the secondary market, the new bond was unable to continue the positive trend in the primary market, with fast money accounts apparently trying to sell the bonds quickly. The Canadian province of Saskatchewan was also active on the same day. A EUR 1.25bn 10-year benchmark was priced 3bp tighter at MS + 49bp thanks to an order book of EUR 6.9bn. The NIP was 3bp. The pri- mary market was also quiet due to the May bank holiday. Overall, Wednesday was the fifth trading day with no pri- mary activity (all segments). Outlook: The fundamentally constructive environment has not changed, so we expect issuance activity to con- tinue, including with various states. The EU has issued a request for proposals (RfP) for another issue in the period 13-17 May. Covered Bonds The covered bond segment remained quiet on the primary market stage throughout the week. This was probably due to the 1 May holiday and the associated absence of major players, as well as the end of the month. In addition, some issuers were still in the blackout period. The "merry month" of May is likely to start on a fundamentally constructive note. Current primary and secondary valuations are generally seen as fair. There are no signs of a slowdown in investor demand, particularly for new issues. Compared with the strong secondary performance at the start of the year, trading is currently a little qui- eter and momentum has slowed somewhat. The country allocation is unlikely to change for the time being. Bonds from the euro core countries will continue to be at the bottom of the performance rankings. In around two months' time, the deadline for topping up protected legacy bonds following the implementation of the CBD will expire. In this context, grandfathered means that these bonds do not necessarily have to fulfil all the requirements of the new directive 1:1 in order to qualify favourably for the regulatory requirements. It remains to be seen whether issuers will use the closing time window to top up corresponding bonds, especially as certain requirements regarding residual term, issue volumes, etc. must be met. Possible increases should therefore not have a significant negative impact on the supply-demand ratio. Outlook: After the temporary pause on the primary market, we expect a noticeable revival in the coming week. The Bank of Queensland already has a 5-year benchmark in the pipeline Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 2,875% KFW Aaa /AAA/AAA 4,000bn 31.03.2032 ms +6 bps  30.04.2024 24,500bn ms +8 area 3,300% Saskatchewan Aa1 /AA/AA 1,250bn 08.05.2034 ms +49 bps 30.04.2024 6,900bn ms +52 area Sources: Bloomberg, Helaba DCM € SSAs issues week of 29 April 2024 Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 2 May 2024 3 of 7 Senior Unsecured Following last week's issuance of just under EUR 3bn in the senior segment, our expectation of sub- dued activity was confirmed this week, although there were three issues totalling EUR 2.5bn. On Monday, UK-based Barclays issued a HoldCo dual-tranche benchmark (senior non-preferred) for EUR 1bn and EUR 0.75bn. The 4NC3 short floater was easily placed at €3 + 80bp and the 11NC10 fixed rate, which was also heavily oversubscribed, at MS + 155bp. Both were significantly oversubscribed, allowing the final spreads to be narrowed by 35 bp and 30 bp to €3 + 80 bp and MS + 155 bp respectively. Banque Fédérative du Crédit Mutuel (BFCM) successfully issued a 7-year senior preferred green benchmark (EUR 750m) today. With an order book of over EUR 3.9bn, the spread over the benchmark narrowed by 35bp to MS +110bp. Outlook: The reporting season for financials is coming to an end. The primary market should therefore pick up again soon. Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication none Sources: Bloomberg, Helaba DCM € Covered Bond issues week of 29 April 2024 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 3,500% BFCM Aa3 /A+/AA- 0,750bn 15.05.2031 ms +75 bps 02.05.2024 2,500bn ms + 110 area Sources: Bloomberg, Helaba DCM € Senior Preferred issues week of 29 April 2024 Coupon Issuer Rating (M/S&P/F) Volume € Tap Maturity Launch-Spread vs. Mid-Swaps ESG Launch Orderbook 1st Spread- Indication 4,347% Barclays PLC Baa2 /BBB/A 1,000bn 08.05.2035 ms +155 bps 29.04.2024 5,300bn ms + 190 area 3mE + 80 Barclays PLC Baa2 /BBB/A 0,750bn 08.05.2028 ms +80 bps 29.04.2024 2,500bn 3m€ +110 area Sources: Bloomberg, Helaba DCM € Senior Non-preferred issues week of 29 April 2024 "There is much to suggest that spread performance will remain positive, but flatter in the coming weeks. In any case, the key issues for the market as a whole remain intact and have yet to be conclusively resolved for the future. First and foremost is the medium-term trend in interest rates in the world's main economic re- gions, even if the "safe" path in the eurozone points to interest rate cuts in the short term". Comment from the Helaba trading floor Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 2 May 2024 4 of 7 Chart of the Week The composition of the iBoxx Covered (here 7-10 years) is re- weighted monthly according to issuance activity. The shifts be- tween January and April 2024 are striking. While France's share fell during this period, Germany and the Netherlands recorded higher weightings. In contrast, the changes for the other countries were relatively small, with Italy and Austria in- creasing slightly. Overall, the analysis is a snapshot and the weighting could change quickly if, for example, more French bonds are issued or the share of German and Dutch bonds falls again due to maturities. In the current constella- tion we estimate the impact on spread developments to be relatively small, especially as France, Germany and the Netherlands are core countries and spreads are already very tight. Short news 4/30 ESAs risk update: risks remain high in the EU financial system: In their spring risk update on the EU financial system, the three European supervisory authorities (EBA, EIOPA and ESMA - the ESAs) point out that risks remain elevated against a backdrop of slower growth, an uncertain interest rate environ- ment and ongoing geopolitical tensions. Financial markets have performed well in recent months in anticipation of potential interest rate cuts in 2024 in both the EU and the US, despite the considerable uncertainty that this entails. However, this strong performance would entail an increased risk of market corrections in the event of un- expected events. Credit risk is also likely to rise further as funding needs increase. Although asset quality in the banking sector remains solid, it is likely to deteriorate if economic growth slows further. 4/30 Fitch Ratings Covered Bonds Snapshot - 1Q24: Net supply of benchmark covered bonds was positive in 1Q24, as issuance was above the average of the last decade, outstripping redemption. Noteworthy Fitch-only rated new issues included UBS Switzerland AG's first jumbo mortgage covered bonds in euros. Loans in the cover pool are in Swiss francs, like outstanding covered bonds issuances. The new euro bonds are swapped into Swiss francs and investors are not at risk of recoveries given default denominated in the wrong currency, as the Swiss franc cover assets are on average shorter (4.25 years) than the new liability (five years). 4/26 Fitch Ratings: Asset Swaps Support Stable Excess Spread in UK Covered Bonds Programmes: The cover pool swaps provided by UK covered bonds issuers have supported stable excess spread in their programmes, Fitch Ratings says. The swaps provide a margin over the UK short-term rate (Sonia), with a median at 1.2% for UK programmes rated by Fitch. This compares to 0.7% for the liabilities margin. This positive differential reduces the break-even over-collateralisation for the ‘AAA’ ratings of UK covered bonds. Composition of the iBoxx Covered broadly stable Country shares in iBoxx Covered (7-10 years) in % Sources: markit, Helaba Research & Advisory 0% 10% 20% 30% 40% April 2023 Juli 2023 Okt. 2023 Jan. 2024 April 2024 Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 2 May 2024 5 of 7 \* Closing prices from the previous day Sources: Refinitiv, Helaba Research & Advisory Market Data (current\*, vs. 1 week, vs. 4 weeks) E-STOXX 600 Banks 196 0,58% 1,42% iBoxx € Cov. Germany 26,7 0,6 -1,0 iTraxx Senior Financial 64,7 -0,2 1,0 10Yr-Yield 2,58 0,00 0,18 iBoxx € Cov. Bonds 32,0 0,4 -1,9 iBoxx € Supranational 30,8 1,8 -1,6 Swap 10J 2,86 -0,03 0,19 iBoxx € Banks PS 67,7 1,4 -2,6 iBoxx € Agencies 15,4 0,1 -3,3 iBoxx € Germany -15,42 3,42 1,08 iBoxx Banks NPS 88,0 1,2 -1,6 iBoxx € Sub-Sov. Germany 23,6 1,1 -0,2 iBoxx € EU 36,67 2,13 -3,25 iBoxx Banks Subordinated 145,1 3,2 -4,0 iBoxx € Sub-Sovereign 38,3 1,3 -2,1 Leisure tip for the weekend: Dyck Castle (NRW) Do you have ideas for leisure tips? We would be happy to receive your suggestions at research@helaba.de. Source: www.stiftung-schloss-dyck.de/en/ Dyck Castle in Jüchen is one of the most important moated castles in the Rhineland. Rhineland. The complex consists of a main castle and two outer castles surrounded by a moat. The castle has a triple moat system. The park was laid out in 1794 in the style of an English landscape garden. The German Foundation for Monument Conservation recognises the park for its 'remarkable number of valuable trees and plant rarities'. The castle has been administered by a foundation since 1999. Find out more: Dyck Castle Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 2 May 2024 6 of 7 Chartbook SSAs, Covered Bonds, Senior Unsecured Senior Unsecured: Primary volumes Senior Unsecured: Spread development EUR benchmark issue volume cumulative by weeks, bn EUR ASW spread, bp Sources: Bloomberg, Helaba Research & Advisory Sources: LSEG, Helaba Research & Advisory 0 20 40 60 80 100 120 0 20 40 60 80 100 120 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 2023 Senior Non-preferred 2023 Senior Preferred 2024 Senior Preferred 2024 Senior Non-preferred 0 50 100 150 200 250 300 0 50 100 150 200 250 300 05/23 07/23 09/23 11/23 01/24 03/24 05/24 Banks Subordinated Banks Senior Bail-in Banks Senior Preferred Covered Bonds: Primary volumes Covered Bonds: Spread development EUR benchmark issue volume cumulative by weeks, bn EUR ASW spread, bp Sources: Bloomberg, Helaba Research & Advisory Sources: LSEG, Helaba Research & Advisory 0 20 40 60 80 100 120 140 160 180 200 220 0 20 40 60 80 100 120 140 160 180 200 220 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 2023 2022 2024 0 5 10 15 20 25 30 35 40 0 5 10 15 20 25 30 35 40 05/23 07/23 09/23 11/23 01/24 03/24 05/24 EUR Covered Covered Germany SSAs: Primary volumes SSAs: Spread development EUR benchmark issue volume cumulative by weeks, bn EUR ASW spread, bp Sources: Bloomberg, Helaba Research & Advisory Sources: LSEG, Helaba Research & Advisory 0 50 100 150 200 250 300 350 400 0 50 100 150 200 250 300 350 400 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 2022 2024 2023 -5 5 15 25 35 45 -5 5 15 25 35 45 05/23 07/23 09/23 11/23 01/24 03/24 05/24 Sub-Sovereigns Agencies Supranationals Sub-Sovereigns Germany Focus on: SSAs & Financials – Weekly Market Update © Helaba | Research & Advisory | 2 May 2024 7 of 7 News from Research & Advisory  Focus on Credit: “Primary market update EUR benchmark bank bonds Q1 2024”:  Focus on Credit: "Corporate Schuldschein: Primary market Q1 2024  Focus on Covered Bonds: APAC Covered Bonds: "Popular securities, limited supply"  Focus on Credit – MayorEuropean Banks: Heading into 2024 with strong credit risk buffers  Focus on: Credit - Primary market update bank bonds  Focus on: Credit – Primary market update corporate bonds  Focus on: Credit – Primary market update Schuldschein  Focus on: Credit – European banks: The sharpening contours of ESG disclosure  Markets & Trends 2024 – Global economy in a transition game Please feel free to contact us Publisher and editorial office Helaba Research & Advisory Editor: Sabrina Miehs Corporate Research & Advisory Responsible: Dr. Gertrud R. Traud Chefvolkswirtin/ Head of Research & Advisory Neue Mainzer Str. 52-58 60311 Frankfurt am Main T +49 69 / 91 32 – 20 24 Internet: www.helaba.com Disclaimer This publication has been prepared with the greatest care. However, it contains only non-binding analyses and forecasts of current and future market conditions. The information is based on sources which we consider to be reliable, but for whose accuracy, completeness or up-to-dateness we cannot assume any liability. All state- ments made in this publication are for information purposes only. They must not be understood as an offer or recommendation for investment de- cisions. Here you can subscribe to our newsletter: https://news.helaba.de/research/ Dr. Susanne Knips Senior Credit Analyst T 069/91 32-32 11 Sabrina Miehs, CESGA Head of FI & SSA Research Senior Advisor Sustainable Finance T 069/91 32-48 90 Christian Schmidt Covered Bond & SSA Analyst T 069/91 32-23 88

SSAs: Oversubscription remains high. Covered bonds: Week without issuance. Senior Unsecured: Reporting season draws to a close. Chart of the week: Composition of iBoxx Covered largely unchanged.